Fidelity® Blue Chip Growth Fund

Scorecard
4 / 5 Stars
Lipper
5 5 4 5 2
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
5 / 5 Stars
TheStreet.com
A- (Buy)

#32 in Large Growth

U.S. News evaluated 465 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

See all Fidelity Investments funds

See full Large Growth rankings

See more fund rankings

Performance

The fund has returned 30.62 percent over the past year, 15.57 percent over the past three years, 24.41 percent over the past five years, and 8.42 percent over the past decade.

Trailing Returns Updated 03.31.2014
Year to date 1.9%
1 Year 30.6%
3 Years (Annualized) 15.6%
5 Years (Annualized) 24.4%
10 Years (Annualized) 8.4%

See more FBGRX performance

Summary

Fidelity Blue Chip Growth's returns have lagged its peers in recent years, but Fidelity hopes that the fund’s new management will put it back on track. New manager Sonu Kalra has already shown his willingness to invest outside traditional blue-chip companies.

As of April 22, 2014, the fund has assets totaling $16.09 billion. Its portfolio consists primarily of investments in large, fast-growing U.S. companies.

Jennifer Uhrig’s three-year reign at the fund was short and lackluster. Now, under Kalra, the fund owns many familiar tech names like Apple, Google and Qualcomm, as well as some relatively lesser-knowns like NetApp. Kalra has also recently added MasterCard and American Express to the portfolio. The fund has returned 30.62 percent over the past year and 15.57 percent over the past three years.

Kalra, a onetime technology and media analyst, took the helm in July 2009. “It’s too early to tell if his approach will give the fund the high-quality portfolio its name implies, but as of last August [2009], it trailed its Russell 1000 Growth bogy on several measures of quality,” says Morningstar. Management follows a growth-focused strategy, investing in what it believes are companies with “above-average growth potential. ”The fund has returned 24.41 percent over the past five years and 8.42 percent over the past decade.

Investment Strategy

According to the fund’s prospectus, management normally invests at least 80 percent of the fund’s total assets in blue-chip companies included in the S&P 500 or the Dow Jones industrial average or in stocks with market capitalizations of at least $1 billion. “[Kalra’s] overriding investment philosophy is based on the belief that stock prices follow earnings over the long term. As a result, he seeks to identify companies that can deliver superior earnings growth over long periods of time,” according to the fund.

Role in Portfolio

Morningstar assigns the fund a “core” role, saying, “With a broadly diversified portfolio and less exposure to speculative issues than most large-growth funds have, this fund definitely fills the core-holding niche of a portfolio.”

Management

In July 2009, Sonu Kalra took over for Jennifer Uhrig, who had run the fund for three years. Previously, Kalra worked on the tech-heavy Fidelity OTC fund.

Fees

Fidelity® Blue Chip Growth Fund has an expense ratio of 0.74 percent.

See more FBGRX fees

Risk

New management has made some moves outside the traditional blue-chip holdings and ventured into smaller, lesser-known names that stray somewhat from the fund’s benchmark index, according to Morningstar.

See more FBGRX risk

Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-04-10

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 1 for one year, 1 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-04-10

The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-04-10

In the annual Lipper/Barron’s Fund Families Survey for 2010, Fidelity Funds ranks 33rd out of 57 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, “This fund has some good things going for it on the stewardship front, including low fees and a generally attractive culture. However, other factors, including an insufficiently independent board, bring its overall grade down to middling territory.”

Morningstar 2011-04-06

In the December 2009 edition of Fidelity Insight, Eric M. Kobren says, "There's nothing particularly unique about [Sonu Kalra's] investment philosophy, which includes a desire to find stocks that can deliver a higher-than-average return on equity, above-average market growth characteristics and sustainable business models through all business cycles."

2010-01-26

In the annual Lipper/Barron’s Fund Families Survey for 2010, Fidelity Funds ranks 33rd out of 57 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, “This fund has some good things going for it on the stewardship front, including low fees and a generally attractive culture. However, other factors, including an insufficiently independent board, bring its overall grade down to middling territory.”

Morningstar 2011-04-06

In the December 2009 edition of Fidelity Insight, Eric M. Kobren says, "There's nothing particularly unique about [Sonu Kalra's] investment philosophy, which includes a desire to find stocks that can deliver a higher-than-average return on equity, above-average market growth characteristics and sustainable business models through all business cycles."

2010-01-26